claim back USA Tax

kirstycobie

Does anyone know where I would start with a UK citizen claiming USA Tax back?

my son plays esports/ gaming and has earned quite a lot of money over the last 2 years and we have been told he can claim this back, as they take 30% for USA Tax, and as UK is lower he should be able to claim some of this back minus the UK amount.

Any help would appreciated thanks 

Nomunnofun1

You can claim relief for US tax paid up to the UK tax due on THAT source of income. 

The remainder is not refundable. 

For example £10000 less US tax paid £3000 (£stg equivalent)
Tax due in UK £2000.
Relief due £2000. 

It would not matter if he paid £1m tax on his other U.K. income - the £1000 difference is lost. 

Dazed_and_C0nfused

I wonder if the op means claim from IRS?

Nomunnofun1

Dazed_and_C0nfused said:

I wonder if the op means claim from IRS?

Possibly - at which point I will pass. 

Bostonerimus1

Where is your son tax resident? If it's the the UK he should be declaring his income to HMRC. You should have a W-8BEN filed to show that you are not a US resident and not liable to US tax. However, this is often ignored and tax withheld anyway by a payer to make sure they don't have any issues with the IRS.

Any tax withheld by the US should be claimed back by filing a 1040-NR and showing there is no US taxable income. The 30% withheld should be return as a refund. You will need to get an Individual Taxpayer Identification Number (ITIN) first.

chrisbur

I was in the position of paying US withholding tax on some image licenses sold in the US through Getty some years ago.  At the time I needed an ITIN to avoid this tax but that was not worth the trouble for what was a fairly small amount but after a few years this changed and a National Insurance number was accepted on a W 8BEN to avoid the withholding tax. Some details here....
https://www.irs.gov/forms-pubs/about-form-w-8-ben

I never did try to claim back the old tax paid seemed like too much trouble for a small amount..

Retirebefore50

kirstycobie said:

Does anyone know where I would start with a UK citizen claiming USA Tax back?

my son plays esports/ gaming and has earned quite a lot of money over the last 2 years and we have been told he can claim this back, as they take 30% for USA Tax, and as UK is lower he should be able to claim some of this back minus the UK amount.

Any help would appreciated thanks 

I can help. I have messaged you. I file these type of returns regularly as my day job.

Dido1875

Hi, can anyone help fill out the W7 and 1040NR to claim tax withheld for win in Las Vegas casino please. Hoping to not have refund rejected because forms incorrect.

kirstycobie

Dazed_and_C0nfused said:

I wonder if the op means claim from IRS?

i have no idea what the difference is between tax and irs? i just know he’s a esports player and won a lot of money and trying to help him claim some tax back and if it should be uk tax he is only paying or usa tax?

Nomunnofun1

kirstycobie said:

Dazed_and_C0nfused said:

I wonder if the op means claim from IRS?

i have no idea what the difference is between tax and irs? i just know he’s a esports player and won a lot of money and trying to help him claim some tax back and if it should be uk tax he is only paying or usa tax?

The question was - do you mean claim tax back from the UK tax authorities (HMRC) or from US tax authorities (IRS)?

kirstycobie

Nomunnofun1 said:

kirstycobie said:

Dazed_and_C0nfused said:

I wonder if the op means claim from IRS?

i have no idea what the difference is between tax and irs? i just know he’s a esports player and won a lot of money and trying to help him claim some tax back and if it should be uk tax he is only paying or usa tax?

The question was - do you mean claim tax back from the UK tax authorities (HMRC) or from US tax authorities (IRS)?

so he has paid tax in usa so it’s claiming usa tax back so we can pay uk tax (im guessing this is the way as we are uk citizens and not usa)